Canadians spend more than 40% of their monthly income on housing, which is extraordinary. However, this dilemma is occurring all across the United States as well. Because of the stagnation in wages, but the increases in housing and other living costs--Canadians are struggling to stay above water. Some Canadians can only dream of becoming a homeowner. Canadians who do manage to acquire a home struggle from month to month with bills and a mortgage--most just one paycheck away from homelessness. Today, there are many new programs cropping up that are meant to help middle class Canadians achieve their dream of home ownership in a very affordable manner, and that is what we are going to talk about here.
These programs ensure Canadians can own a decent home without being underwater and without going above their own income limits to do so as well. So, let's take a look at how some of these programs work.
Bridge to Home Ownership for Canadians
What is great about some of these new programs emerging lies in how they stay honest with the consumer. These bridge to home ownership programs are about helping Canadians spend less on a home, but still have the same home quality. If credit is an issue, financial experts work with families to help them get to where they need to be. How does it all work really? Well, it is as simple as starting an application of interest! You can get a home and not feel like your drowning in debt doing so!
These programs, like "
Sandstone Managements Program
" help those Canadians find housing that fits their budget and family size. You can get into a home of your choosing while you work to repair your credit, and you aren't going to be broke doing this either. Many Canadians are seeing this as a far better alternative than renting an apartment or home, yet never really getting anywhere. The bridge to home ownership programs allows Canadians to get into a home under a lease purchase agreement. Financial experts then work with them to help them get their credit where it needs to be within a year or two to finally get a traditional mortgage agreement.
For the most part, the down payment for these programs is fairly reasonable, often at around 3.5%. So, if you're looking at a $109,000 home, you'll need at least $4000 upfront and then pay around $800 per month, with some of that going to your future mortgage. This strategy works far better for Canadian families than simply renting an apartment or condo! So, home ownership doesn't have to be wearisome. There are clear pathways to this dream, and if you manage your credit well there is a way to gain a traditional mortgage at a low interest rate too!
It is wise to Google what programs are available where you might reside, and to check within our own district in particular. There are various programs that can really encourage Canadian families who want to own their own home. The following below checklist can help you get organized and gain easier approval for one of this bridge programs as well:
Make sure your income is 3 times the monthly mortgage costs of a home you want
Have a clean banking record for the past 3 months
Be prepared to have past rental references
Have personal references on hand
Have your past years taxes available
And have a budget in place